How accounting standard impairment provision affects 2008 fi

How accounting standard impairment provision affects 2008 financial crisis?7. Impairment provisioningThere is a great debate about whether or not the current accounting standards model for determining impairments is appropriate. Various European Central Banks have recommended different models that would allow entities effectively to spread impairment losses over the periods of prosperity. Alternatively the Bank of Spain which was the least affected European financial system during the crisis has recommended the use of a complicated mathematical equation for the determination of impairment provisions.Further questions surrounding this issue include whether the incurred loss method of recognising impairment or the Basel II method of expected losses is the correct method of recognising impairment. An exposure draft relating to impairments is expected to be released in September 2009.Totally 500 words doesnt need introduction and conclusion only main body with reference